Office of the Attorney General
Attorney General Stumbo Announces Agreement with Norwalk Furniture Corporation

Press Release Date:  Friday, May 26, 2006  
Contact Information:  Vicki Glass, 502-696-5643 Office  

Attorney General Greg Stumbo announced today that an agreement has been reached with Norwalk Furniture Corporation of Norwalk, Ohio whereby the corporation will fulfill outstanding furniture orders placed by approximately 82 customers of the Lexington, Kentucky Norwalk franchise store located in Hamburg Place.The operator of that franchise, Danny Hillard, abruptly closed the business earlier this month and the Attorney General’s Office has received nearly two dozen complaints from consumers who made deposits but have not received furniture.

The written agreement, known as an Assurance of Voluntary Compliance, has been submitted to Franklin Circuit Court.Under this agreement, Norwalk Furniture will complete the production and delivery of furniture ordered through the Lexington franchise, regardless of whether Norwalk received the deposit collected by the franchisee.

Norwalk has obtained copies of purchase orders from the Lexington franchise, and Norwalk must notify all identified customers in writing within seven business days as to the status of their order. Customers will be asked to pay the balance owed in order for the furniture to be placed into production, and Norwalk must make every reasonable effort to complete and deliver the furniture in a timely manner.

Norwalk estimates that its products will be delivered within 35 to 45 days from payment, depending on fabric availability.Norwalk will offer home delivery at a cost of three percent (3%) of the invoice or $75, whichever is greater, but cannot charge the customer for any shipping or storage costs.In addition, Norwalk must offer customers the option of picking up their own furniture order in Lexington, at a location to be determined.

“We are pleased with Norwalk Furniture’s willingness to assist Kentucky consumers who fell victim to unscrupulous business practice by the franchisee,” Stumbo said.“Consumers have rights and I will continue to defend those rights.”

Consumers who placed an order at Norwalk in Lexington but who do not receive a letter from Norwalk Furniture Corporation by June 9, 2006 should contact the Attorney General’s Consumer Protection Division at 1-502-696-5389.